Each day we're facing more ICOs, token sales, token generating events or whatever you want to name them. It's hard to keep up with them, especially if you're diving more in-depth and do a complete due diligence. "Complete" may not be complete at all but at least to a degree that adds some value to your investment decisions. Coming from traditional startup investing, I've started to focus on tokenomics or "tokenmetrics" more intensively, analyzing the project and token structure from a generic standpoint. No matter if you're looking at traditional businesses and startups or at crypto projects - the structure matters when you're investing. If we're talking about the circulating supply, the token distribution split or whether unsold tokens get burned are just some examples of facts that have a big influence on your potential return.
Anyway, I'm not a self-made expert and I don't want to write a blog post here and give a full picture of what I think may be (most) important but I like to start discussing and sharing some findings and learnings, even if it's just single statements.
Let me start with one of those:
Especially when investing in token sales with higher hard caps and just low to medium interest, make sure you check what happens to the unsold tokens. You're usually far better off if they get burned. Why? Cause it reduced the circulating supply and even if the project is just low funded at least you keep your fair share in it.What are your most important findings? What's crucial to you when analyzing token sales and new projects out there?
